How many full months does an employee need to stay


Problem

Companies often invest in training their employees to raise their productivity. Economists sometimes wonder why companies spend money on training employees when this incentivizes other companies to poach their employees with higher salaries since the employees gain human capital from training.

Imagine it costs a company 30,000 dollars to teach their employees Python in January, but it also raises their output by 2,500 dollars per month from February on. The company discounts the future at rate of r=0.01 per month.

A. For how many full months does an employee need to stay at a company for that company to make a profit for paying for their employees' Python training? (Solve by using python code)

B. Imagine that 80% of the employees stay for 9 months and 20% of the employees stay for 15 months. Is it worth it for the company to invest in employee Python training?

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Python Programming: How many full months does an employee need to stay
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